BlackRock Inc. · 10-Q · Item 2 MD&A

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

This report, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and may contain information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission reports. These risk factors and those identified elsewhere in this report, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management (“AUM”); (3) the relative and absolute investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of recent or future acquisitions or divestitures, including the acquisitions of Global Infrastructure Management, LLC (“GIP” or the “GIP Transaction”), Preqin Holding Limited (“Preqin” or the “Preqin Transaction”) and HPS Investment Partners (“HPS” or the “HPS Transaction” and together with the GIP Transaction and the Preqin Transaction, the “Transactions”); (7) BlackRock’s ability to integrate acquired businesses successfully, including the Transactions; (8) the unfavorable resolution of legal proceedings; (9) the extent and timing of any share repurchases; (10) the impact, extent and timing of technological changes and the adequacy of intellectual property, data, information and cybersecurity protection; (11) the failure to effectively manage the development and use of artificial intelligence; (12) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s operational systems; (13) the impact of legislative and regulatory actions and reforms, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (14) changes in law and policy and uncertainty pending any such changes; (15) any failure to effectively manage conflicts of interest; (16) damage to BlackRock’s reputation; (17) increasing focus from stakeholders regarding environmental- and social-related matters; (18) geopolitical unrest, terrorist activities, civil or international hostilities, and other events outside BlackRock’s control, including wars, global trade tensions, tariffs, natural disasters and health crises, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (19) climate-related risks to BlackRock’s business, products, operations and clients; (20) the ability to attract, train and retain highly qualified professionals; (21) fluctuations in the carrying value of BlackRock’s economic investments; (22) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products, which could affect the value proposition to clients and, generally, the tax position of BlackRock; (23) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (24) the failure by key third-party providers to fulfill their obligations to BlackRock; (25) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (26) any disruption to the operations of third parties whose functions are integral to BlackRock’s exchange-traded products (“ETPs”) platform; (27) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (28) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.

OVERVIEW

BlackRock, Inc. (together, with its subsidiaries, unless the context otherwise indicates, “BlackRock” or the “Company”) is a leading publicly traded investment management firm with $15.3 trillion of AUM at June 30, 2026. With approximately 26,200 employees in more than 30 countries, BlackRock provides a broad range of investment management and technology and subscription services to institutional and retail clients in more than 100 countries across the globe.

BlackRock’s diverse platform of alpha-seeking active, private markets, index and cash management investment strategies across asset classes enables the Company to offer choice and tailor investment and asset allocation solutions for clients. Product offerings include single- and multi-asset portfolios investing in equities, fixed income, private markets, liquid alternatives, digital assets, currencies and commodities, and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares® ETFs, separate accounts, collective trust funds and other pooled investment vehicles. BlackRock also offers technology and subscription services, including the investment and risk management technology platform, Aladdin®, Aladdin WealthTM, eFront®, Preqin and Cachematrix®, as well as advisory services and solutions to a broad base of institutional and wealth management clients. The Company is highly regulated and manages its clients’ assets as a fiduciary. The Company does not engage in proprietary trading activities that could conflict with the interests of its clients.

BlackRock serves a diverse mix of institutional and retail clients across the globe. Clients include tax-exempt institutions, such as defined benefit and defined contribution pension plans, charities, foundations and endowments; official institutions, such as central banks, sovereign wealth funds, supranationals and other government entities; taxable institutions, including insurance companies, financial institutions, corporations and third-party fund sponsors, and retail intermediaries.

BlackRock maintains a significant global sales and marketing presence that is focused on establishing and maintaining retail and institutional investment management and technology service relationships by marketing its services to investors directly and through third-party distribution relationships, including financial professionals and pension consultants.

Certain prior period presentations were reclassified to ensure comparability with current period classifications.

EXECUTIVE SUMMARY

Three Months Ended

Six Months Ended

(in millions, except per share data)

GAAP basis(1):

Total revenue

$

$

$

$

Total expense

Operating income

$

$

$

$

Operating margin

%

%

%

%

Nonoperating income (expense), less net income

(loss) attributable to noncontrolling interests

("NCI") - consolidated sponsored investment

products ("CIPs")

Income tax expense

Less: Net income (loss) attributable to NCI - Subco

—

—

Net income attributable to BlackRock

$

$

$

$

Diluted earnings per common share

$

$

$

$

Effective tax rate

%

%

%

%

As adjusted(2):

Operating income

$

$

$

$

Operating margin

%

%

%

%

Nonoperating income (expense), less net income

(loss) attributable to NCI - CIPs

$

$

$

$

Net income attributable to BlackRock(3)

$

$

$

$

Diluted earnings per common share(3)

$

$

$

$

Effective tax rate

%

%

%

%

Other:

Assets under management (end of period)

$

$

$

$

Diluted weighted-average common shares

outstanding (including Subco Units)

Shares outstanding including Subco Units(4)

Book value per share(5)

$

$

$

$

Cash dividends declared and paid per share

$

$

$

$

(1)

Accounting principles generally accepted in the United States (“GAAP”).

(2)

As adjusted items are described in more detail in Non-GAAP Financial Measures.

(3)

Net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, assume all Subco Units have been exchanged in accordance with their terms on a one-for-one basis into common stock of BlackRock. Accordingly, the noncontrolling interest allocated to these Subco Units has been included as part of net income attributable to BlackRock, Inc., as adjusted. See Non-GAAP Financial Measures for further information.

(4)

As of June 30, 2026, there were 155.0 million shares of common stock and 7.6 million Subco Units outstanding.

(5)

Total BlackRock stockholders’ equity divided by total shares of common stock outstanding at June 30 of the respective period-end.

GAAP. Operating income of $2.5 billion increased $730 million and operating margin of 34.7% increased 280 bps from the three months ended June 30, 2025. Increases in operating income and operating margin were driven by higher revenue, reflecting the positive impact of markets, organic base fee growth, T1fees related to the HPS Transaction, higher performance fees, and higher technology services and subscription revenue, partially offset by higher expense, including the impact of the HPS Transaction primarily related to T2noncash acquisition-related costs, as well as higher sales, asset and account expense. In addition, during the second quarter of 2025, BlackRock T3recorded a $39 million restructuring charge, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with an initiative to modify the Company's organization to fit more closely with strategic priorities.

Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs decreased $226 million from the three months ended June 30, 2025, driven primarily by a $330 million noncash pre-tax gain in the second quarter of 2025 related to Circle Internet Group, Inc. ("Circle"), partially offset by higher equity method earnings and noncash gains on revaluation of investments.

Earnings per diluted common share increased $2.00, or 20%, from the three months ended June 30, 2025, reflecting higher operating income and a lower effective tax rate, partially offset by lower nonoperating income and a higher diluted share count in connection with the HPS Transaction.

As Adjusted. Operating income of $2.9 billion increased $817 million and operating margin of 45.9% increased 260 bps from the three months ended June 30, 2025. The acquisition-related expenses and restructuring charge described above have been excluded from as adjusted results. Earnings per diluted common share increased $1.86, or 15%, from the three months ended June 30, 2025, primarily reflecting higher operating income, partially offset by lower nonoperating income and a higher diluted share count in connection with the HPS Transaction.

GAAP. Operating income of $5.3 billion increased $1.8 billion, while operating margin of 38.3% increased 630 bps from the six months ended June 30, 2025. Operating income and operating margin reflected higher revenue, driven by the positive impact of markets, organic base fee growth, fees related to the HPS Transaction, and higher technology services and subscription revenue. GAAP operating income and operating margin were also impacted by noncash acquisition-related items in connection with the HPS and GIP Transactions as well as the restructuring charge described above.

Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs decreased $264 million from the six months ended June 30, 2025, driven by the previously mentioned $330 million noncash pre-tax gain related to Circle recorded in 2025 and lower net interest income (expense), partially offset by higher equity method earnings and noncash gains on revaluation of investments.

Income tax expense for the six months ended June 30, 2026 and 2025, included $62 million and $50 million of discrete tax benefits, respectively, related to vested stock-based compensation awards. In addition, income tax expense for the six months ended June 30, 2025 included a $149 million discrete tax benefit realized from changes in the Company's organizational entity structure.

Earnings per diluted common share increased $6.42, or 32%, from the six months ended June 30, 2025, primarily reflecting higher operating income, partially offset by lower nonoperating income, a higher diluted share count in connection with the HPS Transaction, and a higher effective tax rate.

As Adjusted. Operating income of $5.6 billion increased $1.5 billion and operating margin of 45.2% increased 200 bps from the six months ended June 30, 2025. The acquisition-related expenses and restructuring charge described above have been excluded from as adjusted results. Earnings per diluted common share increased $3.10, or 13%, from the six months ended June 30, 2025, reflecting higher operating income, partially offset by lower nonoperating income, a higher effective tax rate, and a higher diluted share count in connection with the HPS Transaction.

See Non-GAAP Financial Measures for further information on as adjusted items and the reconciliation to GAAP.

For further discussion of BlackRock’s revenue, expense, nonoperating results and income tax expense, see Discussion of Financial Results herein.

NON-GAAP FINANCIAL MEASURES

BlackRock reports its financial results in accordance with GAAP; however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow. Management reviews non-GAAP financial measures, in addition to GAAP financial measures, to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance comparability for the reporting periods presented.

Non-GAAP financial measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.

Computations and reconciliations for all periods are derived from the condensed consolidated statements of income as follows:

(1) Operating income, as adjusted, and operating margin, as adjusted:

Three Months Ended

Six Months Ended

(in millions)

Operating income, GAAP basis

$

$

$

$

Non-GAAP expense adjustments:

Compensation expense related to appreciation

(depreciation) on deferred cash compensation plans (a)

Amortization of intangible assets (b)

Acquisition-related compensation costs (b)

Acquisition-related transaction costs (b)(1)

Change in fair value of contingent consideration (b)

)

Restructuring charge (c)

—

—

Operating income, as adjusted

$

$

$

$

Revenue, GAAP basis

$

$

$

$

Non-GAAP adjustments:

Distribution fees

)

)

)

)

Investment advisory fees

)

)

)

)

Revenue used for operating margin measurement

$

$

$

$

Operating margin, GAAP basis

%

%

%

%

Operating margin, as adjusted

%

%

%

%

(1)

Amounts included within general and administration expense.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted:

Three Months Ended

Six Months Ended

(in millions)

Nonoperating income (expense), GAAP basis

$

$

$

$

Less: Net income (loss) attributable to NCI - CIPs

Nonoperating income (expense), net of NCI - CIPs

Less: Hedge gain (loss) on deferred cash compensation

plans (a)

Nonoperating income (expense), less net income (loss)

attributable to NCI - CIPs, as adjusted

$

$

$

$

(3) Net income attributable to BlackRock, Inc., as adjusted:

Three Months Ended

Six Months Ended

(in millions, except per share data)

Net income attributable to BlackRock, Inc., GAAP basis

$

$

$

$

Noncontrolling interest - Subco

—

—

Net income attributable to BlackRock, Inc., (for diluted EPS)

Non-GAAP adjustments(1):

Net impact of hedged deferred cash compensation plans (a)

)

)

(9

)

(2

)

Amortization of intangible assets (b)

Acquisition-related compensation costs (b)

Acquisition-related transaction costs (b)

9

9

Change in fair value of contingent consideration (b)

)

Restructuring charge (c)

—

—

Income tax matters

—

7

—

7

Net income attributable to BlackRock, Inc., as adjusted

$

$

$

$

Diluted weighted-average common shares outstanding

Diluted earnings per common share, GAAP basis

$

$

$

$

Diluted earnings per common share, as adjusted

$

$

$

$

(1)

Non-GAAP adjustments, excluding income tax matters, are net of tax.

(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time, and, therefore, provide useful disclosure to investors. Management believes that operating margin, as adjusted, reflects the Company’s long-term ability to manage ongoing costs in relation to its revenues. The Company uses operating margin, as adjusted, to assess the Company’s financial performance, to determine the long-term and annual compensation of the Company’s senior-level employees and to evaluate the Company’s relative performance against industry peers. Furthermore, this metric eliminates margin variability arising from the accounting of revenues and expenses related to distributing different product structures in multiple distribution channels utilized by asset managers.

•

Operating income, as adjusted, includes the following non-GAAP expense adjustments:

(a)

Compensation expense related to appreciation (depreciation) on deferred cash compensation plans. The Company excludes compensation expense related to the market valuation changes on certain deferred cash compensation plans, which the Company hedges economically. For these deferred cash compensation plans, the final value of the deferred amount to be distributed to employees in cash upon vesting is determined based on the returns on specified investment funds. The Company recognizes compensation expense for the appreciation (depreciation) of the deferred cash compensation liability in proportion to the vested amount of the award during a respective period, while the net gain (loss) to economically hedge these plans is immediately recognized in nonoperating income (expense), which creates a timing difference impacting net income.

This timing difference will reverse and offset to zero over the life of the award at the end of the multi-year vesting period. Management believes excluding market valuation changes related to the deferred cash compensation plans in the calculation of operating income, as adjusted, provides useful disclosure to both management and investors of the Company’s financial performance over time as these amounts are economically hedged, while also increasing comparability with other companies.

(b)

Acquisition-related costs. Acquisition-related costs include adjustments related to amortization of intangible assets, change in fair value of contingent consideration (primarily associated with noncash contingent consideration) incurred in connection with certain acquisitions and other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation and general and administration expense primarily related to professional services. Management believes excluding the impact of these expenses when calculating operating income, as adjusted, provides a helpful indication of the Company’s financial performance over time, thereby providing helpful information for both management and investors while also increasing comparability with other companies.

(c)

Restructuring charge. In the second quarter of 2025, the Company recorded a restructuring charge, comprised of severance and compensation expense for accelerated vesting of previously granted deferred compensation awards, in connection with an initiative to modify BlackRock's organization to fit more closely with strategic priorities. Management believes excluding the impact of this restructuring charge when calculating operating income, as adjusted, is useful to assess the Company’s financial performance and ongoing operations, and enhances comparability among periods presented.

•

Revenue used for calculating operating margin, as adjusted, is reduced to exclude all of the Company’s distribution fees, which are recorded as a separate line item on the condensed consolidated statements of income, as well as a portion of investment advisory fees received that is used to pay distribution and servicing costs. For certain products, based on distinct arrangements, distribution fees are collected by the Company and then passed through to third-party client intermediaries. For other products, investment advisory fees are collected by the Company and a portion is passed through to third-party client intermediaries. However, in both structures, the third-party client intermediary similarly owns the relationship with the retail client and is responsible for distributing the product and servicing the client.

The amount of distribution and investment advisory fees fluctuates each period primarily based on a predetermined percentage of the value of AUM during the period. These fees also vary based on the type of investment product sold and the geographic location where it is sold. In addition, the Company may waive fees on certain products that could result in the reduction of payments to the third-party intermediaries.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted: Management believes nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to its results and provides comparability of this information among reporting periods. Nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, excludes the gain (loss) on the economic hedge of certain deferred cash compensation plans. As the gain (loss) on investments and derivatives used to hedge these compensation plans over time substantially offsets the compensation expense related to the market valuation changes on these deferred cash compensation plans, which is included in operating income, GAAP basis, management believes excluding the gain (loss) on the economic hedge of the deferred cash compensation plans when calculating nonoperating income (expense), less net income (loss) attributable to NCI - CIPs, as adjusted, provides a useful measure for both management and investors of BlackRock’s nonoperating results that impact book value.

(3) Net income attributable to BlackRock, Inc., as adjusted:

•

Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

For each period presented, the non-GAAP adjustments were tax effected at the respective blended rates applicable to the adjustments. The non-GAAP adjustments in 2025 and 2026 related to the change in fair value of contingent consideration are primarily not deductible for income tax purposes.

•

In addition, beginning in the third quarter of 2025, in connection with the HPS Transaction, the Company updated its definition of net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, to assume all outstanding Subco Units issued as part of the consideration for the HPS Transaction have been exchanged in accordance with their terms on a one-for-one basis into common stock of BlackRock, as Subco Units are exchangeable at the option of the holder. Accordingly, the noncontrolling interest related to these Subco Units has been included as part of net income attributable to BlackRock, Inc., as adjusted. Management believes that these updated non-GAAP measures are useful indicators of BlackRock’s profitability and enhance comparability among periods presented, and therefore are useful to investors.

•

Per share amounts reflect net income attributable to BlackRock, Inc., as adjusted, divided by diluted weighted-average common shares including Subco Units.

ASSETS UNDER MANAGEMENT

AUM for reporting purposes generally is based upon how investment advisory and administration fees are calculated for each portfolio. Net asset values, total assets, committed assets or other measures may be used to determine portfolio AUM.

AUM and Net Inflows (Outflows) by Product Type

AUM

Net inflows (outflows)

Three Months

Ended

Six Months

Ended

Twelve Months

Ended

(in millions)

Equity

$

$

$

$

$

$

$

Fixed income

Multi-asset

Alternatives:

Private markets

Liquid alternatives

Alternatives subtotal

Digital assets

)

)

Currency and

commodities(1)

)

)

Long-term

Cash management

)

)

Total

$

$

$

$

$

$

$

AUM and Net Inflows (Outflows) by Client Type and Product Type

AUM

Net inflows (outflows)

Three Months

Ended

Six Months

Ended

Twelve Months

Ended

(in millions)

Retail

$

$

$

$

$

$

$

ETFs

Institutional:

Active

Index

)

)

)

Institutional subtotal

)

Long-term

Cash management

)

)

Total

$

$

$

$

$

$

$

AUM and Net Inflows (Outflows) by Investment Style and Product Type

AUM

Net inflows (outflows)

Three Months

Ended

Six Months

Ended

Twelve Months

Ended

(in millions)

Active

$

$

$

$

$

$

$

ETFs

Non-ETF index

)

)

)

Long-term

Cash management

)

)

Total

$

$

$

$

$

$

$

(1)

Amounts include commodity ETFs and ETPs.

Component Changes in AUM for the Three Months Ended June 30, 2026

The following table presents the component changes in AUM by product type for the three months ended June 30, 2026.

Net

inflows

Market

FX

Average

(in millions)

(outflows)

Realizations(1)

change

impact(2)

AUM(3)

Equity

$

$

$

—

$

$

)

$

$

Fixed income

)

)

Multi-asset

—

)

Alternatives:

Private markets

)

)

)

Liquid alternatives

)

Alternatives subtotal

)

)

Digital assets

)

—

)

(6

)

Currency and

commodities(4)

)

—

)

)

Long-term

)

)

Cash management

)

—

)

Total

$

$

$

)

$

$

)

$

$

The following table presents the component changes in AUM by client type and product type for the three months ended June 30, 2026.

Net

inflows

Market

FX

Average

(in millions)

(outflows)

Realizations(1)

change

impact(2)

AUM(3)

Retail:

Equity

$

$

$

—

$

$

)

$

$

Fixed income

—

Multi-asset

)

—

Private markets

)

)

)

Liquid alternatives

(7

)

9

Retail subtotal

)

ETFs:

Equity

—

)

Fixed income

—

)

Multi-asset

—

)

Digital assets

)

—

)

(6

)

Commodities

)

—

)

)

ETFs subtotal

—

)

Institutional:

Active:

Equity

—

)

Fixed income

)

)

Multi-asset

—

)

Private markets

)

)

)

Liquid alternatives

)

Active subtotal

)

)

Index

)

—

)

Institutional subtotal

)

)

Long-term

)

)

Cash management

)

—

)

Total

$

$

$

)

$

$

)

$

$

(1)

Realizations represent return of capital/return on investments.

(2)

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into United States ("US") dollars for reporting purposes.

(3)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.

(4)

Amounts include commodity ETFs and ETPs.

The following table presents the component changes in AUM by investment style and product type for the three months ended June 30, 2026.

Net

inflows

Market

FX

Average

(in millions)

(outflows)

Realizations(1)

change

impact(2)

AUM(3)

Active:

Equity

$

$

$

—

$

$

)

$

$

Fixed income

)

Multi-asset

—

)

Private markets

)

)

)

Liquid alternatives

)

Active subtotal

)

)

ETFs:

Equity

—

)

Fixed income

—

)

Multi-asset

—

)

Digital assets

)

—

)

(6

)

Commodities

)

—

)

)

ETFs subtotal

—

)

Non-ETF index

)

—

)

Long-term

)

)

Cash management

)

—

)

Total

$

$

$

)

$

$

)

$

$

The following table presents the component changes in AUM by private markets product type for the three months ended June 30, 2026.

Net

inflows

Market

FX

Average

(in millions)

(outflows)

Realizations(1)

change

impact(2)

AUM(3)

Private markets:

Infrastructure

$

$

$

)

$

)

$

$

$

Private equity

)

)

Private credit

)

)

)

Real estate

)

)

Multi-alternatives

)

(5

)

2

Total private markets

$

$

$

)

$

)

$

)

$

$

(1)

Realizations represent return of capital/return on investments.

(2)

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

(3)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.

T4AUM increased $1.5 trillion to $15.3 trillion at June 30, 2026 from $13.9 trillion at March 31, 2026, driven by net market appreciation and net inflows.

Long-term net inflows of $199 billion were comprised of $178 billion, $19 billion and $2 billion from ETFs, retail clients and institutional clients, respectively. Net flows in long-term products are described below.

•

T5ETFs net inflows of $178 billion were led by core equity and index bond ETFs net inflows of $85 billion and $61 billion, respectively. Active ETFs contributed $20 billion of net inflows.

•

Retail net inflows of $19 billion were driven by net inflows into active fixed income products and continued demand for Aperio and BlackRock's liquid alternatives funds.

•

Institutional active net inflows of $44 billion were driven by strength in private markets, fixed income, systematic equity strategies, as well as outsourcing and target-date offerings.

•

Institutional index net outflows of $41 billion were concentrated in low-fee index equity offerings.

Cash management net outflows of $7 billion were driven by redemptions from US government funds.

Net market appreciation of $1.3 trillion was primarily driven by global equity market appreciation.

T6AUM decreased $18 billion due to the impact of foreign exchange movements, primarily due to the strengthening of the US dollar, largely against the Japanese yen and the euro.

Component Changes in AUM for the Six Months Ended June 30, 2026

The following table presents the component changes in AUM by product type for the six months ended June 30, 2026.

Net

inflows

Market

FX

Average

(in millions)

(outflows)

Realizations(1)

change

impact(2)

AUM(3)

Equity

$

$

$

—

$

$

)

$

$

Fixed income

)

)

Multi-asset

—

)

Alternatives:

Private markets

)

)

)

Liquid alternatives

)

Alternatives subtotal

)

)

Digital assets

)

—

)

)

Currency and

commodities(4)

)

—

)

)

Long-term

)

)

Cash management

)

—

)

Total

$

$

$

)

$

$

)

$

$

The following table presents the component changes in AUM by client type and product type for the six months ended June 30, 2026.

Net

inflows

Market

FX

Average

(in millions)

(outflows)

Realizations(1)

change

impact(2)

AUM(3)

Retail:

Equity

$

$

$

—

$

$

)

$

$

Fixed income

—

)

Multi-asset

)

—

)

Private markets

)

)

)

Liquid alternatives

)

)

Retail subtotal

)

)

ETFs:

Equity

—

)

Fixed income

—

)

)

Multi-asset

—

)

Digital assets

)

—

)

)

Commodities

)

—

)

)

ETFs subtotal

—

)

Institutional:

Active:

Equity

—

)

Fixed income

)

)

Multi-asset

—

)

Private markets

)

)

)

Liquid alternatives

)

Active subtotal

)

)

Index

)

—

)

Institutional subtotal

)

)

)

Long-term

)

)

Cash management

)

—

)

Total

$

$

$

)

$

$

)

$

$

(1)

Realizations represent return of capital/return on investments.

(2)

Foreign exchange reflects the impact of translating non-US dollar denominated AUM into US dollars for reporting purposes.

(3)

Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing seven months.

(4)

Amounts include commodity ETFs and ETPs.

The following table presents the component changes in AUM by investment style and product type for the six months ended June 30, 2026.

Net

inflows

Market

FX

Average

(in millions)